Financial Insights

How to Conduct Due Diligence on FedEx Ground Routes for Sale

As you consider buying FedEx Ground routes for sale you need to know that these businesses are structurally simple and niche. What do we mean by that?

If you know what to look for, conducting due diligence on a FedEx Ground operation can be straightforward. However, if you approach due diligence with these routes as you would a more traditional business for sale you are going to miss key flags.

Financing a FedEx Ground Route: Don’t Be Afraid of Using Debt or Leverage to Get Started

Don’t be afraid of using debt/leverage to buy these businesses. These FedEx routes for sale can sustain a higher debt load than what some other businesses allow. Typically, your finance source will require a down payment of 20% or more. With a 20% down payment you lever your business 4:1. You have 1 part down payment and 4 parts debt.

What to Expect When Using Conventional Financing For Your FedEx Ground Route Business

When we say conventional financing we mean receiving a business loan from a local or national bank or credit union. This is opposed to buying a FedEx route for sale with an all cash offer or using a Small Business Association (SBA) loan.

Why should you consider conventional financing for your FedEx route purchase?

Understand FedEx Ground Route Financials: Profit Margins, Financing Options, and More!

Here are the financial highlights from our industry overviews this year. We focused on content this past year on giving you as much insider information as possible—especially information on the financials of buying a FedEx route. We resurface ideas such as: look for P&D businesses with profit margins between 15 and 20% of revenue; potential buyers often turn to bank financing to purchase FedEx routes; one strategy for acquiring sufficient down payment funds is to reduce the loan amount via seller financing; and have a deep understanding of the charges you will negotiate in your ISP contract.

Looking at FedEx Ground Routes for Sale? Here's How to Finance Your Route

MYTH: Investors can't use financing to buy a fedex route

FACT: you need to find the right route and the right financial institution

Potential buyers often turn to bank financing to purchase FedEx routes. If you are considering financing a FedEx route, the two most common types of loans are a Small Business Association (SBA) loan and a conventional loan.

How to Negotiate the Strongest Contract for Your FedEx Ground Business

You are charging FedEx for your services. You will negotiate each of the following ten charges with FedEx. All of these charges combined account for money flowing into your business. It’s critical you understand how and when those charges occur. And how you can increase your cash flow! Following is a quick overview of the charges you will negotiate as part of your Independent Service Provider (ISP) contract.